What’s the big deal about Trump Mortgage?

by Ryan Smith01 Mar 2016
It’s looking more and more like Donald Trump’s prediction last month that he will win the Republican nomination is going to come true. But Trump’s detractors are gleefully pointing out a time when his prognostications didn’t turn out so well.

Following a scathing Trump segment Sunday on John Oliver’s Last Week Tonight, everyone is talking about Trump Mortgage, the brokerage business that The Donald launched at perhaps the worst possible time in history.

Trump Mortgage launched in 2006. At the time, Trump told a CNBC interviewer, “I think it’s a great time to start a mortgage company.”

It wasn’t.

Despite Trump’s prediction that “the real estate market is going to be very strong for a long time to come,” Trump Mortgage closed after just 18 months, leaving behind unpaid bills and a “spotty sales record,” the Washington Post reported.

The company was the victim of the housing meltdown – and, of course, so were many other companies. Despite initial projections that the company would draw in $3 billion in U.S. transactions and eventually move into mortgage lending, Trump Mortgage shuttered after reaching only a third of its target volume. 

At the time, Trump blamed the company's employees for its failure.

“We weren’t happy with them and we terminated them based on the fact they were not doing what they said they were going to do,” he said.

Additional research by Ephraim Vecina




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